Western Digital (WD) and Seagate are now HDD-focused public companies, but comparing them takes more than lining up revenue or earnings. WD separated its Flash business into Sandisk in February 2025, changing the scope of its reported results. For fiscal 2026, both companies reported more than $12 billion in revenue, while their end-market mix, customer concentration, disclosures and financial measures differ. A useful comparison starts with what each company sells and who buys it, then examines margins, cash flow, balance sheets and risks. It does not establish which stock is cheaper or the better investment without dated market prices and comparable valuation data.
What changed at Western Digital—and why it matters
WD completed the separation of its Flash business into Sandisk on February 21, 2025. WD retained the HDD business; Sandisk became an independent company holding the Flash business. WD’s fiscal 2026 filing describes continuing operations as a single reportable HDD segment, with Cloud, Client and Consumer end markets. Seagate’s fiscal 2026 filing also describes an HDD business. WD FY2026 Form 10-K · Seagate FY2026 Form 10-K
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That separation means older WD financial statements may include Flash operations that are no longer part of the company being compared. Check whether a historical figure is for continuing operations and whether the reporting period and accounting basis match before interpreting growth.
How similar are their end markets?
Both companies are exposed to demand for HDD storage in cloud and data-center environments, but the revenue categories are issuer-defined and not necessarily identical.
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| FY2026 measure | Western Digital | Seagate |
|---|---|---|
| Largest reported end-market category | Cloud: 89% of net revenue, per WD’s FY2026 filing. | Data Center: 80% of revenue, per Seagate’s FY2026 filing. |
| Additional end-market information | Also identifies Client and Consumer end markets. | Edge IoT: 20% of revenue, per Seagate’s FY2026 filing. |
| Capacity shipped | Not stated in the cited WD FY2026 figures. | 789 exabytes of HDD capacity, including 695 exabytes of nearline and 94 exabytes of non-nearline capacity. |
WD says its Cloud end market is its largest and fastest-growing, and describes long-term cloud storage demand, AI and hybrid-data workloads as drivers of demand for higher-capacity drives. That is management’s outlook, not a guaranteed forecast. WD also notes that higher-capacity products are more complex to manufacture and have longer production lead times. Seagate reported that fiscal 2026 revenue increased approximately 34% from fiscal 2025, primarily due to increased nearline exabytes shipped, stronger nearline demand and favorable pricing actions. WD FY2026 Form 10-K · Seagate FY2026 Form 10-K
What the FY2026 numbers say—and what they do not
Both companies’ fiscal 2026 years ended July 3, 2026, and each contained 53 weeks. The extra week matters when comparing year-over-year growth. The figures below are company-reported; Seagate’s gross margin and net income are GAAP measures. Do not mix GAAP figures with non-GAAP measures as if they were equivalent.
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| FY2026 reported figure | Western Digital | Seagate |
|---|---|---|
| Revenue | $12.919 billion net revenue. | $12.195 billion revenue. |
| Customer or market concentration | Top ten customers generated 73% of revenue; three individual customers each accounted for at least 10%. | Data Center accounted for 80% of revenue. |
| Gross margin | Not stated in the cited summary; consult WD’s FY2026 filing and use its stated accounting basis. | 45.6% GAAP gross margin. |
| Net income | Not stated in the cited summary; reported results include separation-related accounting activity. | $3.184 billion GAAP net income. |
| Operating cash flow | Not stated in the cited summary. | $3.7 billion. |
Sources: Western Digital FY2026 Form 10-K; Seagate FY2026 Form 10-K; Seagate FY2026 results release and GAAP-to-non-GAAP reconciliation.
Revenue is a measure of scale, not a valuation or investment verdict. Nor should the companies’ headline net income or EPS be compared without reconciling unusual items and continuing operations. WD’s FY2026 results included separation-related accounting activity, including a large retained-interest item, and costs associated with a debt-for-equity exchange. Seagate’s results release provides a GAAP-to-non-GAAP reconciliation; examine the underlying statements before comparing adjusted performance.
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Compare the business risks, not just the growth story
The filings describe risks, not predictions that a particular loss will occur. Use the latest risk-factor sections to assess likelihood and potential impact for your own investment horizon.
| Comparison area | What to examine at WD | What to examine at Seagate | Why it matters |
|---|---|---|---|
| Customer and demand concentration | Cloud represented 89% of revenue; the top ten customers represented 73%, and three customers each accounted for at least 10%. | Data Center represented 80% of revenue; nearline volumes increased. | Large cloud and data-center buyers’ investment cycles can affect demand, pricing and factory utilization. |
| Capacity and product mix | WD links AI and hybrid-data workloads to demand for higher-capacity HDDs, while noting greater complexity and longer lead times for those products. | Seagate shipped 789 exabytes, including 695 exabytes of nearline capacity. | Separate growth driven by shipped capacity from growth driven by pricing or product mix. |
| Margins and pricing | WD says improved pricing and a higher-capacity product mix contributed to gross-margin growth. | Seagate reported 45.6% GAAP gross margin and cited pricing and mix effects. | Compare consistently defined GAAP measures; review non-GAAP reconciliations separately. |
| Supply and manufacturing | WD identifies limited-source suppliers, subcontractors, manufacturing execution and yields as risks. | Seagate lists operational and supply-related uncertainties. | Component availability, production yields, factory utilization and lead times can constrain shipments or raise costs. |
| Technology and competition | WD identifies competition, product development, technological change and the execution required to ramp new products. | Seagate describes technology and market risks and identified a HAMR roadmap in its FY2026 results release. | Capacity roadmaps can support product competitiveness, but delivery and ramp execution are not assured. |
| Capital structure and shareholder returns | WD used Sandisk share exchanges to reduce debt and repurchased shares in FY2026. | Seagate reported $3.6 billion of debt at year-end after reducing debt, alongside dividends and repurchases. | Compare current net debt, interest burden, dilution, dividends and repurchases—not isolated past actions. |
| Trade and legal exposure | WD identifies tariffs and trade restrictions among its risk factors. | Seagate discusses trade policy, export controls, sanctions, litigation and regulatory risks. | Geographic footprint and policy exposure may affect access to markets, customers or inputs. |
Sources: WD FY2026 Form 10-K; Seagate FY2026 Form 10-K; Seagate FY2026 results release.
A practical checklist for comparing the stocks
- Match the period and business scope. Start with fiscal years ended July 3, 2026, note that both had 53 weeks, and account for WD’s post-separation HDD-only continuing business.
- Test the demand exposure. Compare each issuer’s reported end-market mix and customer concentration without treating Cloud and Data Center as perfectly interchangeable categories.
- Separate volume, pricing and mix. For Seagate, examine nearline capacity shipped alongside its cited pricing and demand drivers. For WD, assess its disclosures on higher-capacity product mix, pricing, complexity and lead times.
- Use like-for-like profitability and cash-flow measures. Distinguish GAAP from non-GAAP and investigate unusual items before using earnings or EPS to compare operating performance.
- Review current capital structure and valuation. Use current share prices, diluted share counts, debt and cash balances, and matching-date valuation multiples. The FY2026 revenue figures alone do not show which stock is cheaper.
- Read the current risk factors. The filings provide detailed issuer disclosures; assess them against your assumptions about data-center spending, manufacturing, technology execution and policy exposure.
When discussing Seagate’s cash generation, keep management’s characterization distinct from audited measures: CEO Dave Mosley said the company generated record free cash flow in fiscal 2026, while the company separately reported its GAAP financial table and non-GAAP figures. Seagate FY2026 results release
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